EURUSD

1 hr

4 Hours

Daily

EURUSD took a beating today and sold off very sharply,
after a very slight break of previous resistance at 1.1486.

It is very likely now that wave [ii] of '3' is complete at todays high of 1.1497.
Wave [ii] is labelled as a double combination wave.
And the sharp move lower today is labelled as wave 'iii' of (i) of [iii].
The initial target for wave [iii] lies at 1.0840 where wave [iii] reaches 162% of wave [i].

Tomorrow;
watch for wave (i) to continue lower in five waves
and a break of support to confirm wave [iii] has begun.

GBPUSD

1 hr

4 Hours

Daily

Todays action has ruled out the idea of a larger retracement in wave [ii] green.
Cable has traced out a very impulsive looking decline off the recent high.
This is now viewed as wave (i) down to begin the next leg down in wave [iii] of '5'.
A break of 1.2475 will confirm this new count.

The correction in wave [ii] ended at 1.2815,
just below the 50% retracement level of the previous wave [i].
This serves as another hint that the correction is now over.

Tomorrow;
Watch for wave (i) down to continue and break support to confirm wave [iii] down.

USDJPY

1 hr

4 Hours

Daily

USDJPY has reached into the target area of 108.00 today.
This area is just about right for wave (E) of the triangle wave [B] to complete.
So from this point on,
I will be looking for the initial a signal that a large degree wave [C] rally
is about to begin.
This will come in the form of a five wave rally back towards resistance again at 112.00.

The larger wave count shown on the daily chart calls for wave [C] to break above 125.90 at a minimum.
And this rally should take up most of the coming year.
So I think it will be worth the wait when it does happen.

Tomorrow;
This decline in wave 'C' could stretch into the 107.00 handle
so I will be waiting patiently for the next week or so for the next leg up to arrive.